USDA funding available to help low-income individuals and families buy or repair homes

Published 8:00 pm Friday, December 30, 2022

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USDA Rural Development has funding available for very low- and low-income individuals and families seeking to purchase or repair a home in a rural area.

The Direct Home Loan program offers financing to qualified very-low and low-income applicants that are unable to qualify for traditional financing. No down payment is required, and the interest rate could be as low as 1% with a subsidy. Applicants must meet income and credit guidelines and demonstrate repayment ability. The program is available in rural communities of generally 35,000 people or less.

The maximum loan amount is $40,000 at a 1% interest rate, repayable for a 20-year term and can be used to improve or modernize homes and do essential repairs. Grants of up to $10,000 are available to homeowners 62 and older and must be used to remove health or safety hazards, such as fixing a leaking roof, installing indoor plumbing or replacing a furnace.

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Time is limited to receive funds for the current fiscal year. Contact a USDA Rural Development Housing Specialist in the area today, to see if you qualify.

USDA Rural Development
1005 High Ave. NE
Willmar, MN 56201-2680
320-235-5612 ext. 4

USDA Rural Development
1810 30th St. NW Suite 3
Faribault, MN 55021-1843
507-332-7418 ext. 4

USDA Rural Development
1424 E. College Drive, Suite 500
Marshall, MN 56258-2090
507-537-1401 ext. 4

USDA Rural Development loans and grants provide assistance that supports infrastructure improvements; business development; housing; community services such as schools, public safety and health care; and high-speed internet access in rural areas.

For more information, visit